Zydus Lifesciences eyes full ownership of Amplitude Surgical after landmark deal

What is Zydus Lifesciences’ Latest Move in Europe’s Medical Device Sector?

Zydus Lifesciences Limited has entered into a definitive share purchase agreement to acquire a commanding stake in Amplitude Surgical SA, a Paris-listed orthopaedic surgical solutions company. The Indian pharmaceutical and healthcare major announced it would acquire 75.4% of Amplitude Surgical’s share capital from PAI Partners, Amplitude’s founder Olivier Jallabert, and other management shareholders, at a price of €6.25 per share. Together with two additional agreements signed with minority shareholders in March 2025, Zydus is poised to control 85.6% of Amplitude Surgical’s total capital following completion of the “Block Acquisition”.

The move comes after the completion of the mandatory information and consultation process with Amplitude SAS’s works council, a critical regulatory step under French labour law. The process ensures employee representatives are duly informed and consulted regarding significant company changes, including ownership transfers.

What Are the Conditions for Zydus’ Acquisition of Amplitude Surgical?

While the share purchase agreement marks a major milestone, the finalisation of the Block Acquisition remains contingent on several conditions. Chief among these is obtaining clearance from the French Ministry of Economy under the country’s foreign investment control regime. France, like many European jurisdictions, requires government review of foreign takeovers in sensitive sectors, including healthcare and biotechnology, to safeguard strategic national interests.

Another condition involves the re-investment of Olivier Jallabert, Amplitude’s CEO and founder, back into the company. His continued involvement is expected to ensure management continuity and signal business stability to customers and partners during the transition. The agreement also includes safeguards in the form of material adverse event clauses, meaning that significant unforeseen events affecting Amplitude Surgical’s business could impact the deal’s closure.

Assuming all preconditions are met, Zydus Lifesciences anticipates completing the Block Acquisition by the third quarter of 2025, aligning with broader strategic ambitions to accelerate its global footprint beyond pharmaceuticals into advanced surgical technologies.

How Does Zydus Plan to Consolidate Full Ownership of Amplitude Surgical?

Following the completion of the initial majority stake acquisition, Zydus Lifesciences plans to launch a mandatory simplified tender offer for the remaining shares of Amplitude Surgical, as required under French takeover regulations. The offer would be filed with France’s financial markets regulator, the Autorité des Marchés Financiers (AMF), and would allow remaining minority shareholders to sell their stakes at the same price of €6.25 per share.

If Zydus successfully secures more than 90% ownership of both the share capital and voting rights of Amplitude Surgical, it will be positioned to initiate a squeeze-out procedure. This would allow Zydus to compulsorily acquire any remaining shares, thereby delisting Amplitude Surgical from the Paris stock exchange and achieving full ownership.

Supporting this plan, Zydus announced on April 17, 2025, that it has secured tender commitments covering an additional 4.7% of Amplitude’s share capital from other minority investors. This further bolsters Zydus’ path to crossing the crucial 90% threshold post-tender offer.

Why Is Zydus Lifesciences Targeting Amplitude Surgical?

Amplitude Surgical is a well-established player in the orthopaedic surgical space, specialising in lower limb technologies including hip, knee, and ligament repair systems. Founded in 1997, the company has grown to become a significant force within France and international markets such as Australia, Brazil, and South Africa. Despite its relatively modest size compared to global medical device giants, Amplitude holds strong intellectual property, innovative product lines, and regulatory approvals across key geographies.

Zydus Lifesciences, historically known for its strengths in generic drugs and biotechnology, has been actively diversifying into adjacent healthcare segments. The acquisition of Amplitude provides Zydus with immediate access to Europe’s lucrative medical device markets, particularly in the orthopaedic sector which continues to experience structural growth driven by ageing populations and increasing surgical interventions.

This move reflects a broader strategy seen among Indian healthcare majors seeking to expand into high-value product categories and international markets, mitigating domestic pricing pressures and tapping into higher-margin businesses.

How Does the Amplitude Acquisition Align with Zydus Lifesciences’ Broader Strategy?

The acquisition of Amplitude Surgical fits into Zydus Lifesciences’ long-term strategy to evolve into a diversified, innovation-driven global healthcare company. The healthcare conglomerate has been stepping up investments in biotechnology, vaccines, specialty pharmaceuticals, and, increasingly, medical devices.

Amplitude’s presence across Europe and emerging markets, combined with its strong product development capabilities, complements Zydus’ existing operations and strengthens its international distribution network. By integrating Amplitude’s surgical technologies, Zydus could also explore synergies in manufacturing, R&D, and supply chain optimisation.

In addition, by acquiring a controlling interest first and subsequently launching a tender offer, Zydus is following a textbook M&A playbook that allows for smoother integration planning, post-acquisition operational control, and eventual full ownership without triggering destabilising uncertainty among employees, partners, and customers.

What Is the Latest Sentiment Around Zydus Lifesciences and Amplitude Surgical Stocks?

As of April 2025, Zydus Lifesciences Limited remains a closely watched stock among both domestic and international investors. The company’s shares, listed on the National Stock Exchange of India and the Bombay Stock Exchange, have experienced moderate volatility over the past few months, largely reflecting broader sector-wide trends affecting Indian pharmaceutical and healthcare stocks. Investor sentiment toward Zydus Lifesciences has been cautiously optimistic, bolstered by the company’s ongoing diversification efforts and international expansion strategy.

Following the announcement of its plan to acquire a majority stake in Amplitude Surgical SA, Zydus Lifesciences’ stock witnessed a slight uptick in trading volumes, indicating growing institutional interest. However, price movement remained relatively muted, suggesting that the market had already priced in the company’s intentions after the initial announcement in March 2025. Analysts covering Zydus Lifesciences currently maintain a consensus “Hold” rating, awaiting further clarity on post-acquisition integration strategies and the financial impact of the deal. The latest analyst updates point to potential upside if Zydus successfully leverages Amplitude Surgical’s European distribution networks and product pipeline.

In terms of institutional flows, foreign institutional investors (FIIs) have shown a steady, albeit cautious, accumulation of Zydus Lifesciences shares. FII holdings increased marginally in the March 2025 quarter, reflecting a positive outlook toward Indian healthcare companies with global ambitions. Domestic institutional investors (DIIs), including mutual funds and insurance companies, have largely maintained their existing positions, signalling a wait-and-watch approach ahead of the acquisition’s financial closure in Q3 2025.

Meanwhile, Amplitude Surgical SA (Euronext Paris: AMPLI) has seen its stock price converge closely toward the €6.25 acquisition offer price. After the initial spike following the March 11, 2025, announcement, Amplitude Surgical’s shares have traded in a narrow band, indicating market expectations that the acquisition will proceed as planned. The stock’s limited free float and the high percentage of committed shares to Zydus further support this stability.

Market participants widely expect the tender offer to be successful, with Zydus Lifesciences surpassing the 90% ownership threshold needed to execute a squeeze-out. Should the tender offer and squeeze-out proceed without regulatory hurdles, analysts foresee Amplitude Surgical’s delisting from Euronext Paris by the end of 2025.

Overall, both companies are experiencing relatively stable market sentiment. Investors are focused on regulatory approvals, deal closure timelines, and Zydus’ integration capabilities. The current investment view on Zydus Lifesciences leans toward a “Hold” with a positive bias, contingent upon successful completion of the Amplitude Surgical acquisition and clear articulation of post-merger value creation strategies.